What is the SHOP Marketplace?
SHOP is the Small Business Health Options Program, a marketplace where small employers can buy health and dental coverage for their employees.
Not sure whether your business qualifies? See the four SHOP eligibility tests.
What SHOP is, who it is for and who sells it
What it is
A federal marketplace built for small employers. You choose the coverage, set what you contribute, and your employees enroll.
Who it is for
Small businesses and nonprofits, generally with 1 to 50 employees. Owners with no employees are directed to other coverage options.
Who sells it
Insurance companies, or a SHOP-registered agent or broker. You can use your current broker or find a new one.
When you can start
Any time of year. Eligible employers do not have to wait for open enrollment.
From eligibility check to employee enrollment
1. Check that you qualify
Confirm your size, who must be offered coverage, participation and location. The four tests are here.
2. Compare plans and prices
Review the health and dental plans available to your group and what each would cost.
3. Enroll
Enroll directly with the insurance company, or work through a SHOP-registered agent or broker.
4. Employees enroll
Your employees choose from the plans you offer. After the initial period they can enroll after a life change such as a birth, adoption or marriage.
You set the shape of the benefit
Health, dental or both
Offer health coverage, dental coverage, or both.
One plan or several
Offer a single plan, or let employees choose among several.
Your contribution
Decide how much of the premium you pay.
Dependents and waiting period
Decide whether dependents are covered, and set a waiting period for new hires of up to 90 days.
SHOP and the small business tax credit
Enrolling through SHOP is generally the only way an eligible small employer can claim the Small Business Health Care Tax Credit.
The credit has its own size and wage limits that change each year. Our Section 45R guide walks through it, and we check the current IRS figures with you before you decide.
Before you decide whether SHOP fits
Six questions small employers ask about what SHOP is.
Is SHOP only for health insurance?
No. A small employer can offer health coverage, dental coverage, or both.
Does the whole company have to use one plan?
No. You can offer a single plan or let employees choose among several.
Do we have to wait for open enrollment?
No. Eligible small employers can start offering coverage at any time of year.
Can employees enroll outside the initial period?
Yes, after a life change such as having a baby, adopting or getting married.
Do we need a broker?
No. You can enroll directly with an insurance company. A SHOP-registered agent or broker can also compare options and handle enrollment for you.
Is SHOP the only way to buy small group coverage?
No. Many small employers buy small group coverage directly from carriers through a broker. We compare both routes and tell you which looks stronger for your group.
Ready? Send us your employee count and hours, or talk it through with someone first. Send us your renewal. No cost, no obligation.
General information based on HealthCare.gov SHOP guidance as of October 2026, not legal or tax advice.
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